The Government is introducing a wage subsidy program to support employees and businesses affected by the Coronavirus. The JobKeeper Payment is designed to help businesses to cover the costs of their employees’ wages, so that more employees can retain their job and continue to earn an income
The decision to apply for the JobKeeper Payment should be made as a total business decision taking into account; legal obligations, business impact, cash flow implementation, business planning and record keeping requirements
This is complex legislation, the following is a simple summary guide only for businesses under $1 billion excluding NFP. We recommend all decisions be made in conjunction with advice from your professional advisors or contact us to discuss
Step 1 - Eligibile Employer
- Did you carry on a business at 1 March 2020?
- Did you employ at least one employee in your business at 1 March 2020?
- Are your employees currently employed in your business for eligible fortnights?
- Is your business turnover less than $1 billion?
- Has your business has a turnover fall of 30%?
- Are you not an ineligible employer
If you answered yes to all of these, check out details on eligible employer
Step 2 - Eligible Employees
Employees may be eligible if they are:
- Employed by you
- At 1 March 2020 Either - permanent full-time or part-time employee OR long-term casual (employed on a regular and systematic basis for at least 12 months) and not a permanent employee of any other employer
- Over 16 years old
- Australian resident (check all details on link below)
- Not in receipt of payments: government parental leave or Dad or partner pay; payment in accordance with Australian worker compensation lay for an individual's total incapacity for work
- Agree to be nominated by your nominating employees including notify eligible employees, sending and collecting nomination notices
- Ensure you collect and file all completed Employee Nomination Notices
Step 3 - Next Steps
If you are an eligible employer and have eligible employees you can complete check the following steps
Step 4 - Paying Your Employees
You need to pay your eligible employees at least the minimum amount of $1500 per fortnight, you cannot pay your employees less than $1500 even if you re-hire them or they earn less than this. You will not be eligible for JobKeeper payment if you pay your nominated employee less than $1500 per fortnight.
Step 5 - Eligible Business Participant
With all the publicity surrounding JobKeeper and an employee's entitlement this is one area that can be overlooked.
You may be a eligible for JobKeeper payment scheme for one individual in the business for a payment of $1500 per fortnight if you meet the following -
1. Eligible Business Participant
- An individual Not Employed by your entity
- Actively engaged in the business carried on by your entity at 1 March 2020 and for fortnight
- Either: Sole trader, partner in partnership, adult beneficiary of trust, or shareholder or director in a company
- Ensure you meet all details eligible business participant requirements which are very similar to eligible employees
- Ensure your eligible business participant completes and returns the Nomination form (except for Sole Traders), which must be held on file.
2. Other Eligibility Requirements
- Enrol your Eligible Business Participant while completing the JobKeeper enrolment on your business portal or though your BAS or Tax Agent
Step 6. - Ongoing Reporting